Question: A machine costing $ 3 , 0 0 0 must be replaced at the end of 8 years. The resale value of the machine at

A machine costing $3,000 must be replaced at the end of 8 years. The resale value of the machine at the time of replacement is $600. At what annual discount rate (compounded annually) would it be equally economical to use a similar machine costing $4,000 with a life of 8 years and a resale value of $1,900?(Assume no taxes.) a.2.4% b.2.7% c.3.0% d.3.3% e.3.6%

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